Which of the Following Is an Example of an Incentive

question 108

Multiple Choice

Which of the following is an example of an incentive or pressure that increases the risk of fraud?

• A)The client operates in a highly competitive industry
• B)The number of job offers that the company makes per year
• C)The due date of employee contracts
• D)The amount of stock options for lower-level managers

---

Definitions:

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue.

Company Assets

Resources owned by a company that have economic value and can contribute to future profits, such as cash, inventory, and equipment.

Profitability

A measure of the efficiency of a company in generating profit relative to its revenue, costs, and investments.

Quick Ratio

A financial metric that measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.